Impact on Risk Optimal Amount(Level)of Current Assets Risk Analysis Policy Risk Policy A Policy B ABc LoW Average Policy C High Current Assets Risk increases as the level of current assets are reduced 25,000 50,000 OUTPUT(units) 8-108-10 Impact on Risk Risk Analysis Policy Risk A Low B Average C High Risk increases as the level of current assets are reduced. Optimal Amount (Level) of Current Assets 0 25,000 50,000 OUTPUT (units) ASSET LEVEL ($) Current Assets Policy C Policy A Policy B